With a domestic leasehold property in Brent Cross, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years left. Anyone in Brent Cross with a lease drawing near to 81 years left should seriously consider extending it sooner than later. When the lease term has under 80 years remaining, under the relevant statute the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Brent Cross with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service gives you enhanced control over the value of your Brent Cross leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Charlie was the the leasehold owner of a studio flat in Brent Cross being marketed with a lease of fraction over 61 years left. Charlie informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Last Winter we were phoned by Mr and Mrs. B Thomas , who took over the lease of a studio flat in Brent Cross in November 2001. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative flats in Brent Cross with an extended lease were in the region of £181,600. The average ground rent payable was £55 invoiced monthly. The lease elapsed in 2078. Having 52 years remaining we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Brent Cross property is First Floor Flat 61 Wilberforce Road in March 2014. The premium payable was £10,130 and the case was remitted back to the Willesden County Court to effect the Vesting Order (Claim No 3W103100). This case affected 1 flat. The number of years remaining on the existing lease(s) was 71 years.